The Walt Disney Company (NYSE:DIS) Q3 2019 Earnings Conference Call - Final Transcript

Aug 06, 2019 • 04:30 pm ET


The Walt Disney Company (NYSE:DIS) Q3 2019 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen, and welcome to the Walt Disney Company's Fiscal Third Quarter 2019 Financial Results Conference Call.[Operator Instructions]. I would now like to turn the conference over to Lowell Singer, Senior Vice President of Investor Relations, you may begin.

Lowell Singer

Good afternoon and welcome to the Walt Disney Company's Third Quarter 2018 Earnings Call. Our press release was issued about 25 minutes ago and is available on our website at www.disney.comforward/investors. Today's call is also being webcast and a replay and transcript will also be available on our website. Joining me for today's call are Bob Iger, Disney's Chairman and Chief Executive Officer; and Christine McCarthy, Senior Executive Vice President and Chief Financial Officer. Following comments from Bob and Christine, we will be happy to take your questions.

So with that, I will turn the call over to Bob to get started.

Robert A. Iger

Thanks, Lowell, and good afternoon, everyone.

I've been doing earnings calls for a long time and this is one of our more complicated ones, we certainly have a lot to cover and discuss. This is our first full quarter since we closed our acquisition of 21st Century Fox in March and our results reflect our efforts to integrate the assets businesses and talent we acquired in order to enhance and advance our strategic transformation. Implementation of our integration plan is well underway, a complex process given the magnitude of the endeavor and we remain confident in our ability to successfully execute our strategy to drive maximum value from the combined company and our appreciation for the long-term value we can create has increased.

I'm going to ask Christine to take you through the numbers and then I'll be back to provide some additional perspective that should give you greater insight into our bullish view of the future.

Christine M McCarthy

Thanks, Bob and good afternoon everyone. Excluding certain items affecting comparability, earnings per share from continuing operations for the third quarter were $1.35. Our third quarter results reflect a full quarter of performance of the 21CF businesses we acquired and are still in the process of integrating and full consolidation of Hulu. Results this quarter include a number of factors, we have recognized can be challenging to model in a moment I'll discuss our Q3 results in greater detail and shed additional light on these factors and then I'll highlight a few items that will impact our Q4 results. Since we are in the middle of our fiscal 2020 planning process, I expect to have more to say on the key drivers of next year's result during our Q4 call.

The 21CF businesses we acquired excluding 21CF stake in Hulu had a slightly negative impact on third quarter segment operating income. The total adverse impact on segment operating income including full consolidation of Hulu and the effect of inter-segment eliminations was about $300 million. Overall, we estimate the acquisition of 21CF had a dilutive impact on our Q3 EPS before purchase accounting of about $0.60 compared to the $.035 set